Optimism for retail sales despite SARS

Optimism for retail sales despite SARS

A'an Suryana, The Jakarta Post, Jakarta

Sales in the country's retail industry this year would not be
significantly affected by the outbreak of Severe Acute
Respiratory Syndrome (SARS), industry experts said Monday.

Richard Santosa of the Indonesian Retailers Association
(Aprindo) told The Jakarta Post that sales had been largely been
generated by middle- and low-income households.

He said that consumer confidence in this category remained
high despite the outbreak of the deadly disease.

"It seems the disease does not affect the middle- to lower-
(income) class people. But it does hit confidence among the
middle- to upper-class consumers," Richard said.

"The lifestyle's of poorer people also prevents them from
potentially being affected by the disease, such as they are less
exposed to the air conditioners in closed spaces and have less
contact with people who often go abroad," Indonesian Food and
Beverage Association chairman Thomas Dharmawan said.

With the high level of consumer confidence in the low-income
bracket, retailers are optimistic the industry will grow by
around 3 percent this year.

Several analysts have previously said the outbreak would badly
hit various sectors in the economy, including airlines, tourism,
hotels and retail as consumer confidence plunged. Many people
would avoid going to malls or shopping centers to avoid contact
with people affected by SARS, analysts said.

But Kustardjono Prodjolalito, an industry observer, said the
malls and shopping centers, particularly those catering to
middle- and lower- income households, still remained crowded.

He said sales would surge should the SARS epidemic turn ugly.

"People will increase retail stocks for more than one month,
if the situation worsens.

After this big purchase, they will tend to stay at home,
waiting until the situation improves," Kustardjono said.